 2015-02-11 |
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YC’s January Consolidated Revenue Drops 4.7%; Subsidiary ACHEM Expected to Recover This Year
MoneyDJ News, February 11, 2015
Reporter: News Center
YC Group (4306), Taiwan’s leading adhesive tape manufacturer, announced its consolidated revenue for January, reporting NT$1.558 billion, down 4.7% month-on-month and 1.8% year-on-year. Its subsidiary ACHEM (1715) posted consolidated revenue of NT$935 million, a month-on-month decrease of 1.65%, but a year-on-year increase of 0.5%. Xinzhou Global (3171) reported January consolidated revenue of NT$139 million, down 6.8% year-on-year.
YC Group stated that ACHEM's revenue is gradually recovering as its OPP production line at the Ningbo plant resumes operations. The stabilization of the Chinese OPP market, combined with steady exports to the U.S. and Japan, is helping revenues return to normal levels. This year, ACHEM is expected to see growth as its Yangmei PE plant and the Haian plant in China come online, with the benefits of vertical integration becoming more apparent, leading to a gradual upward trend in overall performance.
Regarding Xinzhou Global, YC Group pointed out that after the consolidation of its packaging materials business, it has seen improved operational efficiency in Taiwan. In China, Baodashi's operational performance is gradually improving and has started to show monthly profitability. The company plans to expand its operations in the central and northern regions of China, with future growth for Xinzhou Global looking promising.
Additionally, YC noted that its film business is under pressure due to persistently low oil prices, which has impacted performance. If oil prices continue to decline, it will further increase operational pressure, posing challenges for future revenue and profit growth. |
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